Saudi Arabia is poised to become one of the world’s biggest manufacturing hubs, thanks to its trillion-dollar infrastructure and real estate projects ongoing in the country. However, even as the sector in the country continues to expand exponentially, it remains entrenched in traditional practices, leading to project disruptions and increased costs, he says Ibrahim Mannaits founder and CEO BRKZa construction technology startup based in Riyadh.
The building materials market in Saudi Arabia and the wider MENA region mainly involves physical visits to suppliers, price haggling and a lack of guarantees on quality and delivery dates, some of the key points that inspired him to launch BRKZ in 2022, Manna said at TechCrunch.
Today BRKZ is emerging from stealth, backed by an $8 million Series A round led by Beco Capital and 9900 Capital. Aramco’s Wa’ed Ventures, Knollwood Investment Advisory, RZM Investment and MISY Ventures also participated in the round. The new investment follows a $5.55 million seed round led by Better Tomorrow Ventures, with participation from Class 5 Global, Knollwood Investment Advisory, Plus VC and several Saudi angel investors.
Following the new capital infusion, the B2B marketplace aims to expand into Saudi Arabia and the MENA region to facilitate contractors in sourcing materials and manufacturers in sales, with a focus on same-day or next-day delivery. In addition, the startup intends to engage in equipment rental and human resource procurement.
“We are looking to invest in many key areas to develop our platform. Our main focus for the coming year is to expand our in-house technology capabilities, double down on financing solutions and ensure we have stable operations and vendor coverage in every city in KSA [Kingdom of Saudi Arabia]said Manna, who prior to founding BRKZ was an executive at Careem, the company that Uber bought in 2019 for $3.1 billion.
“We are also working to strengthen our vertical integration with suppliers to have more control over the supply chain. . . Expanding into the MENA region is also a big part of our strategy as we prepare to bring our services to more markets,” he said.
The startup does not directly support online purchases, but requires buyers to create and share requests for quotation (RFQs) through its app or WhatsApp, a process that Manna says takes 30 seconds to complete.
“This method allows for customization and negotiation on bulk orders, which is common in the construction industry due to the specific requirements and large quantities that can affect pricing. The RFQ system ensures that buyers get the most accurate and competitive prices based on their needs,” he said.
He added that the startup can process commonly ordered building materials in minutes, but it takes longer for “specialty materials.” However, the turnaround time is still faster than traditional sourcing from brick and mortar stores. He added that they are also working on an upfront custom pricing mechanism for their customers.
Since launch, BRKZ claims to have facilitated more than $170 million worth of deals on nearly 1,200 products from more than 350 suppliers, numbers set to grow, especially as it establishes a presence across the UK and MENA, a region currently faces a significant construction market Size development.
“What’s rewarding about digitizing a traditional sector is the size of the impact you can see in a short period of time. Our customers save a lot of time – what used to take days now takes minutes, from putting together an RFQ and completing an order,” said Manna. “We have people in Riyadh managing projects miles away without having to leave their offices. It’s all about making things run smoother and faster.”
